LONDON - Quiz PLC, a prominent omni-channel fashion brand, has reported a decrease in revenue and a loss before tax for the six-month period ending September 30, 2024. The company, which released its unaudited interim results today, saw group revenue fall from £42.3 million for the same period in 2023 to £39.1 million.
The fashion retailer experienced a loss before tax of £4.7 million, compared to a loss of £1.5 million in the previous year. Additionally, the loss per share increased significantly to 4.69p from 0.96p. Operating cash flows also saw a downturn, decreasing to £1.7 million from £2.1 million, while net borrowings stood at £3.0 million, contrasting sharply with a net cash position of £3.6 million a year ago.
In a trading update, Quiz PLC noted that while the initial three months to October showed positive trends in key performance indicators, November brought a substantial drop in both online and in-store traffic, leading to a revenue shortfall of £1.5 million for the August to November period. Despite a slight recovery in online sales in December, in-store revenues continued to lag behind the previous year's figures, resulting in overall revenues that did not meet management's expectations.
The company also highlighted upcoming financial pressures, including an anticipated £1.7 million per annum increase in costs from April 2025 due to proposed changes in the National Living Wage and Employer's National Insurance arrangements.
As of December 26, 2024, Quiz PLC reported net borrowings of £3.5 million and a total liquidity headroom of only £0.5 million. The board anticipates that additional funding will be necessary early in 2025, given the disappointing revenue levels during the crucial Christmas trading period.
In light of these challenges, Quiz PLC has proposed a delisting from the AIM market of the London Stock Exchange (LON:LSEG). Shareholders will vote on this proposal and the re-registration of the company as a private limited entity at a general meeting scheduled for January 8, 2025. If approved, the delisting is expected to take effect on January 23, 2025. The company has already secured irrevocable undertakings from shareholders representing approximately 66.7 percent of its issued share capital to vote in favor of the resolutions.
The proposed delisting follows an extensive review by the directors, who believe this strategic move will serve the best interests of the company and its shareholders. Subject to the delisting's approval, the Non-Executive Directors are expected to resign from the board.
This article is based on a press release statement from Quiz PLC.
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